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Hinduja group confirms evaluating options for Jet Airways stake

Jet, once the biggest private airline in India, stopped all flights from April 17 after lenders refused to give it any more funds to keep flying.

T E Narasimhan  |  Chennai 

Jet Airways
Jet Airways

The is evaluating options to pick up a stake in crisis-ridden Jet Airways, said Dheeraj G Hinduja, chairman of commercial vehicle maker Ashok Leyland, which is part of the business conglomerate.

Hinduja's confirmation comes after reports that the group is in talks with various stakeholders, including Abu Dhabi-based Media reports this week said that the group was interested in investing around Rs 1,000 crore to Rs 1500 crore in the airline.

Hinduja, while announcing Ashok Leyland's financial results in Chennai, said it is premature to talk anything more about

stock rallied 14 per cent on Tuesday after media reports said the had expressed its interest in picking up a minority stake in Jet.

The has business in 10 sectors, including, oil and chemicals, banking and finance, power, spread in 38 countries.

However, negotiations between Hinduja Group and was reportedly going slow. Officials of Hinduja Group met Etihad executives’ on Thursday at the Etihad headquarters in Abu Dhabi to discuss the deal. Top executives of (SBI), which leads the lenders’ consortium, were also present at the meeting in Abu Dhabi, the corporate headquarters of Etihad.

Jet, once the biggest private airline in India, owes vast sums to its lessors, employees, fuel suppliers and other parties. It stopped all flights from April 17 after lenders refused to give it any more funds to keep flying.

The total investment required by to restart operations is around Rs 5,950 crore. Etihad, in its offer, said it would be able to invest only Rs 1,700 crore and acquire 24 per cent stake, said reports.

First Published: Fri, May 24 2019. 17:40 IST
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